India’s largest institutional investor, the Life Insurance Corporation of India (LIC), made significant changes to its equity investments during the April–June 2025 quarter. The insurer reshuffled its massive Rs 15.5 lakh crore stock portfolio, which spans 277 listed companies. According to recent disclosures, LIC reduced its holdings in 81 companies, exited some stocks entirely, and also made fresh investments, especially in the defence and technology sectors.
Stake Reductions in Popular Stocks
LIC trimmed its shareholding in several popular companies that are widely followed by retail investors. Some notable reductions were seen in:
Suzlon Energy
Reliance Power
Vedanta
Hero MotoCorp
Among these, Hero MotoCorp witnessed the sharpest cut. LIC reduced its stake in the two-wheeler giant by 531 basis points, lowering its total shareholding to 6.53%. The reason behind these reductions could be profit booking, changes in the company’s fundamentals, or portfolio rebalancing to increase exposure in other high-growth areas.
Major Shift Towards Defence Sector
One of the biggest highlights of this quarter’s portfolio update was LIC’s clear shift towards India’s defence public sector undertakings (PSUs). The insurer either bought fresh stakes or increased its holdings in the following four defence companies:
1. Mazagon Dock Shipbuilders Ltd (MDL) – LIC took a fresh stake of 3.27%, valued at around Rs 3,857 crore. MDL is a key shipbuilding company under the Ministry of Defence.
2. Cochin Shipyard Ltd – LIC raised its stake to 3.05%. This PSU builds ships for the Indian Navy and Coast Guard.
3. Bharat Electronics Ltd (BEL) – LIC increased its holding to 1.99%. BEL is India’s top defence electronics manufacturer.
4. Hindustan Aeronautics Ltd (HAL) – The insurer lifted its stake to 2.77% in this key aircraft manufacturer.
This move reflects growing investor confidence in India’s indigenous defence production capabilities and the government’s push for defence self-reliance under the “Make in India” initiative.
Increased Bets on Technology and Financial Services
Apart from defence, LIC boosted its holdings in several technology and financial stocks, continuing a trend from recent quarters. The most notable increases were in:
Infosys – LIC raised its stake by 43 basis points to 10.88%, making it one of the largest shareholders in the company. The value of LIC’s investment in Infosys now stands at approximately Rs 63,400 crore.
HCL Technologies – The insurer increased its holding by 48 basis points to 5.31%, worth around Rs 21,900 crore.
Jio Financial Services – LIC lifted its stake by 55 basis points to 6.68%. This company is a relatively new listing that emerged after the demerger from Reliance Industries.
Tata Motors – The insurer hiked its stake by 74 basis points to 3.89%, showing faith in the company’s strong recovery in both domestic and international markets.
These additions highlight LIC’s strategy of aligning its investments with India’s growing digital economy and financial inclusion trends.
LIC’s Largest Holdings
Despite the reshuffling, LIC continues to hold substantial positions in several large-cap blue-chip companies. The top two holdings by market value as of June 2025 are:
Reliance Industries Ltd (RIL) – LIC holds a 6.93% stake, which is valued at approximately Rs 1.3 lakh crore. This makes Reliance LIC’s single largest holding.
ITC Ltd – The insurer owns a 15.8% stake, valued at Rs 82,200 crore, in the FMCG-to-hospitality conglomerate.
These long-term positions suggest that LIC still sees strong value in these companies’ growth prospects and cash generation capabilities.
Conclusion
LIC’s latest portfolio changes indicate a strategic realignment toward defence, technology, and financial services, while trimming exposure to sectors or companies that may have peaked or underperformed. The insurer’s increased stake in defence PSUs reflects confidence in India’s growing military-industrial capabilities. At the same time, rising investments in Infosys, HCL Tech, and Jio Financial Services show LIC’s optimism about India’s digital and fintech-driven future.
For retail investors and market watchers, LIC’s quarterly filings offer valuable insights into sectoral trends and the potential long-term winners in the Indian stock market.

Bringing you the latest updates on finance, economies, stocks, bonds, and more. Stay informed with timely insights.
Be First to Comment